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Top economist says two contenders to replace Fed Chair Powell stand out

1. El-Erian favors Rieder and Warsh as top Fed chair candidates. 2. Both candidates have strong market understanding and communication skills. 3. Rieder suggests the next Fed chair must lower interest rates next year. 4. Fed leadership change may stabilize market uncertainty post-Powell. 5. A strong Fed chair could influence S&P 500 volatility.

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FAQ

Why Bullish?

The endorsement of well-qualified candidates like Rieder and Warsh may boost market confidence. History shows leadership changes in the Fed often lead to market stability.

How important is it?

Strong potential candidates for the Fed chair could calm market fears and influence investor decisions, impacting S&P 500 performance.

Why Short Term?

The S&P 500's reaction will be immediate as markets assess new Fed chair's policies. Past transitions in Fed leadership often affected market sentiment quickly.

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